AAA: Crude oil spike increases Florida gas prices to new highs in 2021

Prior to the pandemic, the global market was oversupplied. Now demand outpaces supply.

From AAA

Florida drivers are feeling even more pain at the pump this week, as the ripple effects from the pandemic continue to play out in the crude oil market. The price of crude surged last week, on concerns that what was already a tight global fuel market, could get even tighter this winter. And gas prices are being dragged along for the ride.

Florida gas prices surged 12 cents last week, rising from $3.05 to $3.17 per gallon. Sunday's state average ($3.17) was the highest daily average since October 2014.

"The recent jump at the pump is directly tied to rising futures prices," said Mark Jenkins, spokesman, AAA - The Auto Club Group. "The higher crude price raises the cost of producing gasoline. Unfortunately, it's not clear when these prices will come back down."

The price of US crude jumped 5% last week. For context, crude rarely exceeded $75 per barrel this year. However, on Friday, it briefly traded above $80, before ultimately settling at $79.31. That was the highest daily settlement since October 2014.

Why the price spike?

What's moving the market right now are concerns of what would happen if this winter is colder than normal. The issue is, natural gas prices in Europe and Asia have tripled - to a level that would be the equivalent of oil prices reaching $200 per barrel. This has speculators worried that the countries affected would turn to the oil market for heating and power generation. An oil market that is already extremely tight on supplies. Last year, global production declined, after the pandemic caused fuel demand to collapse. This year, demand has rebounded, but oil producers have not kept pace. Prior to the pandemic, the global market was oversupplied. Now demand outpaces supply.

Fortunately, the US may be shielded from the natural gas crunch, since US supplies are strong and very little of it is typically exported. Unfortunately, the US is not shielded by the tightness in the crude market - which has always been influenced by global factors.

Apopka Prices

Apopka Gas Prices provided by GasBuddy.com

Regional Prices

Most expensive metro markets – West Palm Beach-Boca Raton ($3.32), Fort Lauderdale ($3.21), Port St. Lucie ($3.20)

Least expensive metro markets – Pensacola ($3.12), Crestview-Fort Walton Beach ($3.14), Jacksonville ($3.14), Punta Gorda ($3.14)

Ways to Save on Gasoline

Combine errands to limit driving time.

Shop around for the best gas prices in your community.

Consider paying cash. Some retailers charge extra per gallon for customers who pay with a credit card.

Remove excess weight in your vehicle.

Drive conservatively. Aggressive acceleration and speeding reduce fuel economy.

Find Florida Gas Prices

Daily gas price averages can be found at Gasprices.aaa.com

State and metro averages can be found here

Gas Price Survey Methodology

AAA updates fuel price averages daily at www.GasPrices.AAA.com. Every day up to 130,000 stations are surveyed based on credit card swipes and direct feeds in cooperation with the Oil Price Information Service (OPIS) and Wright Express for unmatched statistical reliability. All average retail prices in this report are for a gallon of regular, unleaded gasoline.